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Massmart surges over 20%, but has the market overreacted?


MONEYWEB
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Massmart surges over 20%, but has the market overreacted?
Some analysts think so, considering the Game and Makro owner’s wider FY losses, debt burden and lack of dividend.
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Game, Massmart s biggest division in terms of number of stores, continues to make a loss. Image: Suren Naidoo, Moneyweb
JSE-listed retail and wholesale group Massmart’s share price soared 20.76% on Monday, closing at R54.10 a share – the highest level in more than a year.
The surge came following the release of the group’s full-year results to December 27, 2020, which show that sales declined 7.7% to R86.5 billion, contributing to a wider net loss of R1.75 billion (2019: R1.29 billion). ....

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The perils of legacy software for retailers adopting digital journeys


The perils of legacy software for retailers adopting digital journeys
The author, Allan Dickson, argues that XXX
In the devastating wake of the global pandemic, companies across industries are grappling with the economic impact – and few more so than the embattled retail sector. Without a doubt, “making the numbers” is rare amid weaker revenue. This means there is inevitably a strong focus on cost containment, including IT spend, often resulting in the dilution or even abandonment of IT initiatives that are essential to retailers’ long-term competitiveness.
The worst hit are likely to be those companies that have regularly deferred replacement of stable older IT systems “for another year” to save money. Today, many existing portfolios contain proprietary and highly modified best-of-breed applications that may span several generations of technology. Functionality within these may be brittle and difficult to change, requiring expensive interfacing and l ....

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